Brownstone Energy Successfully Drills Initial Kokopelli Well to 8,440 Feet

09/25/2012 09:31 AM ET

Approximately 2,500 Feet of Gas Column Thickness Encountered in the Lower Mesa Verde (Williams Fork and Rollins Formations)

TORONTO, ONTARIO, Sep 25, 2012 (MARKETWIRE via COMTEX News Network) -- Brownstone Energy Inc. (TSX VENTURE: BWN)(OTCQX: BWSOF)
("Brownstone" or "the Company") is pleased to announce that the
operator has advised that the first well at its 28% owned Kokopelli
project in the Piceance Basin, Colorado, was directionally drilled to
a total depth of 8,440 feet, just below the base of the Rollins
Formation, and has encountered reservoir quality and gas column
thickness similar to other recently drilled wells in the immediate
area. The 2,500 feet of gross gas column, depth and composition of
reservoirs encountered in the Lower Mesa Verde Formation were as
expected. The well has been cased to total depth in preparation for
completion operations. Completion operations, including perforating,
fracturing and production tie-in are expected to be completed during
Q4 2012. Successful completion of this well secures for Brownstone
the substantial portion of the proven, probable undeveloped reserves
attributed to the Lower Mesa Verde section of this Kokopelli
leasehold by Brownstone's independent engineers.

As previously reported, this 2,200 acre project is ideally situated
for exploitation of both the Williams Fork and Mancos hydrocarbon
laden sand/shale bodies immediately adjacent to Williams Energy
(NYSE: WPX) and Bill Barrett Corporation (NYSE: BBG) who are
developing and producing their respective leaseholds to the east,
west and north of the Company's acreage. Brownstone has worked
closely, through its operator, Dejour Energy Inc. (NYSE MKT:
DEJ)(TSX: DEJ), with important constituents including local
citizenry, government, the Bureau of Land Management and the Colorado
Division of Wildlife to develop a mutually acceptable development
plan for this environmentally sensitive area.

According to National Instrument 51-101 standard in Canada, the
reserves evaluation report for Brownstone's leases at Kokopelli Field
effective June 30, 2011, performed by Gustavson and Associates of
Boulder, Colorado, projects the before tax discounted net present
value 10% (NPV10) of proved undeveloped (PUD) reserves valued at
$34.6 million and proven plus probable undeveloped (2P) reserves
valued at $74.5 million net to Brownstone in the Lower Mesa Verde
Formation. Associated Proven and Probable Undeveloped Reserves net to
Brownstone from the same independent engineering report are 60 BCFe
which includes 3.6 MM barrels of liquids. It should be noted that the
estimated values disclosed do not represent fair market value.